Cryptocurrency rebounds, shaking off Yen fear... will market cap reclaim $2.2 trillion?

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The cryptocurrency market rebounded, shaking off the impact of Yen intervention. The S&P 500's record high and a sharp drop in international oil prices revived risk asset buying.

According to crypto media outlet BeInCrypto on August 4 (local time), the total cryptocurrency market capitalization increased by approximately 0.76% over 24 hours, reaching $2.17 trillion. The S&P 500 index rose 1.48% to 7,600.50 the previous day, setting a new all-time high, and the Dow Jones index also reached an all-time high. The strength in risk assets, first seen in the US stock market, spread to the cryptocurrency market a day later.

The joint Yen buying intervention by the US and Japan on August 2 was a factor that delayed the cryptocurrency rebound. This joint intervention by the two countries is the first since 2011. Concerns grew that a stronger Yen could lead to the unwinding of Yen carry trades and cryptocurrency sell-offs, but no large-scale chain sell-offs occurred. The total cryptocurrency market capitalization is attempting to recover $2.2 trillion, and analysis suggests that if it falls below $2.16 trillion, it could drop to $2.12 trillion.

Easing tensions in the Middle East also contributed to the market rebound. US President Donald Trump halted plans to attack Iran on August 2 and pursued negotiations to reopen the Strait of Hormuz. Following this announcement, Brent crude oil plummeted by approximately 9%. However, reports that Iran rejected the US proposal left open the possibility of military tensions escalating again.

Polkadot (DOT) showed a significant increase among major cryptocurrencies, rising by about 6%. Polkadot broke above the top of its descending channel on August 1 and recorded its strongest trading volume since July 10. However, trading volume has decreased since August 3, and additional buying pressure is needed to break above $0.9. The support level is $0.74, and if it surpasses $0.9, the next target is $1.

[Article Key Summary]

-The total cryptocurrency market capitalization increased by approximately 0.76% over 24 hours, reaching $2.17 trillion.

-Concerns about large-scale carry trade liquidations due to Yen intervention weakened, and Brent crude oil plummeted by approximately 9%, reviving risk asset buying.

-Polkadot rose by about 6%, and whether it breaks above $0.9 was presented as a key variable for further gains.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*